Elon Musk announced plans to distribute one SpaceX share to every American child under 18 next year, a proposal that lifted the company's stock despite lingering questions about its structure and timing. The move, disclosed via a post on X, would involve roughly 70 million shares, representing about $10 billion in value and slightly more than 1% of Musk's holdings.
The announcement follows Anthropic's decision to allocate 5% of its stock to a public benefit fund, reflecting a broader trend among tech firms to address public concerns about AI safety. However, SpaceX has not clarified the mechanics of the giveaway, including the class of shares or the exact distribution timeline, and the company did not respond to requests for comment.
SpaceX shares had fallen more than 10% last week amid a broader tech selloff, but the proposal helped stem the decline. Investors are now looking ahead to the company's third-quarter earnings report, due Tuesday, with analysts expecting earnings per share of $0.14 on revenue of $12.9 billion.
Oil Surges Above $110 on Iran Attack Reports
Oil prices climbed above $110 a barrel after Al Jazeera reported a US attack on Iran's Konarak naval base, intensifying concerns about further disruption to Middle Eastern energy supplies. Brent crude futures traded near $109 after briefly exceeding $110, while West Texas Intermediate hovered above $103.
The reported strike, which allegedly injured two soldiers and targeted a 35-millimetre cannon, renewed fears of escalation in a conflict that has already disrupted shipping through the Strait of Hormuz. Data from Kpler showed average crude flows through the Gulf fell to about 8.5 million barrels per day last week, down from more than 20 million barrels per day the previous week.
Oil had initially declined after the US eased restrictions on Russian oil, but the latest geopolitical developments shifted focus back to supply risks. US Treasury yields also rose, with the 10-year yield up five basis points to 5.148% and the 30-year yield reaching 5.48%.
CoreWeave Rebounds on Analyst Upgrades
CoreWeave shares rebounded on Monday after a steep selloff, supported by positive analyst commentary and a broader recovery in technology stocks. Goldman Sachs upgraded the AI-focused cloud computing company to Buy from Neutral, although it lowered its price target to $106 from $139, arguing that investor concerns about the company's risks may have become overstated.
Cantor Fitzgerald maintained its Overweight rating and $176 price target, while Evercore ISI and Deutsche Bank retained positive ratings with $150 targets. The recovery followed a 24% decline over the five sessions through the previous week, driven by worries about CoreWeave's debt-funded expansion and the cost of financing its data-centre infrastructure.
The company rents computing capacity powered by Nvidia graphics processing units to AI developers, including OpenAI, and major technology companies such as Meta Platforms. Despite strong demand for AI computing capacity, investors are assessing whether future revenue and profits can justify the company's substantial borrowing and infrastructure commitments.
Amazon Surges 5% After Morgan Stanley Upgrade
Amazon shares advanced 5% after Morgan Stanley raised its price target to $350 from $335 and reiterated an Overweight rating, identifying the company as one of its top picks. The new target implies approximately 40% upside from Friday's closing price of $250.
Analyst Brian Nowak expects Amazon Web Services (AWS) to remain a major growth driver, forecasting year-over-year growth of 47% in 2027. Nowak also highlighted opportunities in agentic AI, which allows systems to perform tasks on users' behalf, and in robotic fulfilment operations.
“We continue to think AWS’s growth and profit runway is under-appreciated,” Nowak wrote in a research note. Amazon's cloud business could benefit from expanding demand for AI computing, while its established e-commerce infrastructure may help it participate in AI-powered shopping. Morgan Stanley also sees potential for Amazon to expand its use of robotics through new fulfilment centres and upgrades to existing facilities in 2027.
This article is for informational purposes only and does not constitute financial advice.
